Construction Accounting And Financial Management (4th Edition)
4th Edition
ISBN: 9780135232873
Author: Steven J. Peterson MBA PE
Publisher: PEARSON
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Chapter 7, Problem 12P
A project consists of three tasks. Task A is scheduled to begin at the start of Week 1 and finish at the end of Week 3. Task B is scheduled to begin at the start of Week 1 and finish at the end of Week 2. Task C is scheduled to begin at the start of Week 2 and end at the end of Week 3. The budgeted cost for Task A is $22,000, for Task B is $17,000, and for Task C is $15,000. At the end of the second week, Task A is 65% complete, Task B is 95% complete, and Task C is 60% complete. What is the SPI for the project at the end of the second week?
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Forest Trails is preparing their budgeted financial statements for the coming period, and has accumulated the following data:
Beginning-of-period balances:
Cash: $13,500
Accounts Receivable: $54,000
Raw Materials Inventory: $16,000
Work in Process Inventory: $60,000
Finished Goods Inventory: $24,000
Equipment (historical value): $480,000
Accumulated Depreciation: $288,000
Accounts Payable: $27,000
Estimates for end-of-period balances:
Accounts Receivable: $67,500
Raw Materials Inventory: $10,000
Work in Process Inventory: $50,000
Finished Goods Inventory: $29,000
Accumulated Depreciation: $296,000
Accounts Payable: $18,000
Budgeted activity levels for the period:
Sales: 3,125 units, at an average sales price of $80/unit
Purchases of Direct Materials: $44,800
Direct Labor Wages: $75,000
Manufacturing Overhead: $25,000
Selling and Administrative Expenses: $42,000
All sales are on account. Only raw materials are purchased on account. The company has no debt aside from current liabilities.…
At the beginning of the period, the Cutting Department budgeted direct labor of $54,900 and supervisor salaries of $32,380 for 3,050 hours of production. The department actually completed 3,300 hours of production. Determine the budget for the department assuming that it uses flexible budgeting.
Puyallup Corporation developed the following budgeted and actual overhead costs for the current year:
BUDGETED
(at 20,000 direct labor hours)
ACTUAL
(at 18,000 direct labor hours)
Variable Overhead
₱3,800,000
₱3,510,000
Fixed Overhead
5,000,000
4,536,000
TOTAL
₱8,800,000
₱8,046,000
Consistent with the prior year, overhead costs are is applied based on direct labor hours. Puyallup budgeted 20,000 direct labor hours for the current year which is the plant’s normal operating capacity.
Required: Calculate the following variances:
Variable overhead spending variance
Fixed overhead spending variance
Idle capacity variance
Overall factory overhead variance
Chapter 7 Solutions
Construction Accounting And Financial Management (4th Edition)
Ch. 7 - What are the key steps in the monitoring and...Ch. 7 - What does it indicate when a superintendent has to...Ch. 7 - What is the best way to control labor costs? What...Ch. 7 - Why are equipment costs for company-owned...Ch. 7 - What is an internai change order and how is it...Ch. 7 - Why is it important to have a realistic budget for...Ch. 7 - What are some of the problems with using the CPI?Ch. 7 - Prob. 8DQCh. 7 - During the design phase, what are the steps for...Ch. 7 - Determine the estimated cost of the work performed...
Ch. 7 - Determine the estimated cost of the work performed...Ch. 7 - A project consists of three tasks. Task A is...Ch. 7 - A project consists of six tasks. Task A is...Ch. 7 - The ACWP at the end of the second week for the...Ch. 7 - A project consists of six tasks. Task A is...Ch. 7 - Determine the total estimated cost at completion...Ch. 7 - A project consists of six tasks. Task A is...Ch. 7 - Prob. 18P
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